- While price continues to drop, a significant support level at $136.15 could halt and possibly reverse the trend.
- Indicators present conflicting signals; some point to a reversal whereas others indicate decline.
Solana [SOL] has moved slowly for most of the month, with only a slight gain of 3.43%, likely due to trading within a consolidation channel. However, in the last few trading sessions, the struggle has been more apparent, with a modest weekly gain of 0.45% and a daily decline of 2.43%.
Although the market typically expects SOL to drop further, reaching the bottom of the consolidation channel between $128.50, additional factors should be considered.
SOL chart presents a decline set-up
According to the chart for Solana, it has recently reacted off the resistance level within its consolidation channel. This channel is characterized by price fluctuations between established support and resistance levels.
After bouncing off the resistance, the price has been trending downward and is typically expected to reach the support level at 128.50, a pattern observed on several occasions.
However, the formation of a minor support line within the consolidation channel at $136.15 offers potential for a Solana rally if sufficient buying pressure drives this change.
Source: Trading View
At this point, AMBCrypto has observed varied reaction in trading activities, placing SOL on a somewhat uncertain trajectory — whether the $136.15 support will hold or not.
Indicators signal downturn for Solana, yet the depth is unclear
Technical indicators are hinting at a continued downward movement for SOL, driven by strong bearish sentiment. Notably, the Moving Average Convergence Divergence (MACD) and the Aroon line are signaling this potential drop.
The Aroon indicator, which features an orange ‘Aroon Up’ line and a blue ‘Aroon Down’ line, tracks the time between highs and lows to assess the trend’s strength and direction.
With the Aroon Down line currently hig
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Author: Olayiwola Dolapo
